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High Risk Auto Insurance Guide

High risk auto insurance usually refers to drivers who are classified as high risk due to numerous tickets, automobile accidents, or drunk driving violations. When an insured is classified as high risk, they will usually have trouble obtaining auto insurance. If they are able to obtain auto insurance their rates may be prohibitively high.

High risk auto insurance laws vary greatly by state. Most states required that all drivers have auto insurance before operating on public roadways. However some states have no provisions or protections for drivers who are classified by insurance companies as high risk. Insurance companies in states like this usually deny all applications from prospective insurers who are high risk. As a result, a high risk driver may be legally eligible to drive, but be unable to satisfy the requirement of having auto insurance (because no company will insure them). As a result, these individuals are unable to legally drive.

High Risk Auto Insurance

Recognizing the inherent unfairness of this situation, several states have put laws into effect that protect drivers who are classified as high risk. In some states high risk drivers are put into a specific insurance pool. Their rates are still considerably higher, but they are guaranteed auto insurance coverage.

States that have no fault laws are also usually better for high risk drivers. No fault laws protect high risk drivers from being sued over events resulting from another accident or incident. These laws limit the risk of insurance companies (since they cannot be sued, no matter who is at fault) and insurance companies are better able to offer insurance to high risk drivers.

Jurisdictions with No Fault auto insurance laws:

Florida
Hawaii
Kansas
Michigan
Massachusetts
Minnesota
New York
North Dakota
Puerto Rico
Utah

These states give drivers the option of choosing either no-fault or traditional coverage:

New Jersey
Pennsylvania
Kentucky

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